Require the lender to develop and implement enhanced policies and procedures to ensure electronic signatures from borrowers are properly supported.
Publication Report
2020-LA-1005 | September 03, 2020
Mid America Mortgage, dba 1st Tribal Lending, Pinole, CA, Did Not Always Follow HUD’s Section 184 Program Requirements
We audited Mid America Mortgage’s, dba 1st Tribal Lending’s, Section 184 Indian Home Loan Guarantee program based on a previous U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audit and corrective action verification… moreRelated Recommendations
Public and Indian Housing
- Status2020-LA-1005-001-AOpenClosedClosed on December 01, 2022$607,598.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Request indemnification for the 7 of the 11 loans that had material underwriting deficiencies (appendix D). The unpaid balance for these loans is $1.3 million and the estimated potential loss to HUD is $607,598.
Require the lender to fully implement its quality control plan with respect to reverifications and provide HUD with periodic reports for 12 months to ensure that it conducts its quality control reviews in accordance with the requirements.